Academy/Employment & Labor Law/Wrongful Termination
Lesson 5 of 5

Wrongful Termination

Wrongful Termination

While most U.S. employment is at-will, there are important legal limits on an employer's right to terminate employees. A termination that violates these limits constitutes wrongful termination.

Exceptions to At-Will Employment

Statutory exceptions — federal and state laws prohibit termination based on:

  • Protected characteristics (race, sex, age, disability, religion, etc.)
  • Exercising legal rights (filing a workers' compensation claim, taking FMLA leave, reporting safety violations)
  • Retaliation for whistleblowing or participating in investigations
  • Contractual exceptions:

  • An express employment contract may limit termination to "for cause" only
  • An implied contract may arise from statements in an employee handbook, offer letters, or oral assurances of job security
  • Collective bargaining agreements typically require just cause for termination
  • Public policy exception — courts in many states prohibit termination for reasons that violate public policy, such as firing an employee for:

  • Refusing to commit an illegal act
  • Performing a legal duty (like jury service)
  • Exercising a legal right (like filing a workers' comp claim)
  • Proving Wrongful Termination

    To succeed in a wrongful termination claim, an employee generally must show:

    1. An employment relationship existed

    2. The employer terminated the employee

    3. The termination violated a statute, contract, or public policy

    4. The employee suffered damages as a result

    Remedies

    Successful wrongful termination plaintiffs may recover:

  • Back pay — wages lost from termination to judgment
  • Front pay — future lost wages if reinstatement is not feasible
  • Compensatory damages — emotional distress, harm to reputation
  • Punitive damages — to punish particularly egregious conduct (available in some cases)
  • Reinstatement — returning the employee to their former position
  • Attorney's fees and court costs
  • Constructive Discharge

    If an employer makes working conditions so intolerable that a reasonable person would resign, the employee may claim constructive discharge — treated legally as a termination by the employer.

    Practical Steps

    If you believe you have been wrongfully terminated:

  • Document everything (performance reviews, emails, witness accounts)
  • File a complaint with the appropriate agency (EEOC, state labor board)
  • Consult an employment attorney promptly — statutes of limitations are often short
  • Quiz: Wrongful Termination

    Question 1 of 3

    What is constructive discharge?